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Reasons for Mergers & Aquisition

Why do you want to acquire a business?

  1. Organic growth is difficult or not possible or not quick enough
  2. Diversification of product or market
  3. Removing a competitor
  4. Synergy with the target acquisition
  5. Tax efficiency, buying a failing / loss making business can reduce Corp tax liabilities
  6. Valuable patents or IP held by the company you want to acquire
  7. High value assets that are disposable of the target company
  8. Ego or vanity
  9. Marketing ploy to enhance your current brand or company
  10. Vertical integration
  11. Investment into management teams

 

Key Tip

It’s not possible to eliminate risk, but highly recommend as much due diligence as possible is done before making any acquisition, its money well spent

 

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